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CITY OF WEST CHICAGO
INFRASTRUCTURE COMMITTEE
AGENDA ITEM SUMMARY
ITEM TITLE:
AGENDA ITEMNUMBER: _7?-N. |
Resolution No. 25-R-0011 - Authorizing the City
Administrator to Enter into a Contract for the Supply of
Electricity for the City’s Water Treatment Plant, all Well
Stations, and all Sanitary Lift Stations
COMMITTEE AGENDA DATE: Feb 6, 2025
COUNCIL AGENDA DATE: Feb 17, 2025
STAFF REVIEW: Mehul T. Patel, P.E., Director of Public Works SIGNATURE
APPROVED BY CITY ADMINISTRATOR: Michael L. Guttman SIGNATURE.
ITEM SUMMARY:
Since January 2007, because of the electric utility deregulation law passed by the State of Illinois in 1997,
the City of West Chicago has contracted for the supply of electricity from a third-party supplier for electric
to be supplied to the City's Water Treatment Plant, all Well Stations, and all Sanitary Lift Stations. The
distribution of electricity continues to be provided by ComEd.
Working with David Hoover, who formed a collaborative known as NIMEC that represents multiple
municipalities; alternative pricing is obtained via competitive bid from three third party electric suppliers.
In the past, the competitive bids were then compared with ComEd’s rates to determine which pricing
yields the most significant savings for the City. Now, however, ComEd no longer offers fixed rates for
medium and large accounts like ours. Therefore, the City is forced to seek competitive bids or pay
ComEd's floating rate, which is not recommended, as the floating rates are inflated and change hourly.
As a result of NIMEC’s services:
e In October 2006, the City executed a 17 month contract (January 2007 to May 2008) with
Constellation NewEnergy.
e In 2008, the City executed a three-year contract (June 2008 to May 2012) with Exelon Energy
Company for a rate that varied between 0.0679 and 0.0864 $/kWh.
e In 2012, the City executed a three-year contract (June 2012 to May 2015) with Exelon Energy
Company for 0.04374 $/kWh.
e In 2015, the City executed a two-year contract (June 2015 to May 2017) with Dynegy Energy
Services, LLC for 0.05244 $/kWh.
e In 2017, the City executed a three-year contract (June 2017 to May 2020) with Dynegy Energy
Services, LLC 0.04834 $/kWh.
e In 2020, the City executed a three-year contract (June 2020 to May 2023) with Constellation Energy
Services, LLC 0.048 $/kWh.
e In 2022, the City executed a two-year contract (June 2022 to May 2025) with Dynegy Energy
Services, LLC 0.05809 $/kWh. The existing contract will expires on May 31, 2025.
Again, NIMEC represents the interest of several municipalities and seeking alternative pricing from three
third party electric suppliers. As electricity is now a commodity that is market driven, it can change from
day to day and hour to hour. Therefore, once the competitive bid prices are received, the City will need to
make an immediate decision and enter into an agreement with the lowest cost supplier on the day of the

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CITY OF WEST CHICAGO
bid. What this means is that the City Council, like it did on the previous occasions, would need to
authorize the City Administrator to sign a contract with the lowest cost supplier. The Infrastructure
Committee would then subsequently review, and the City Council would then have to formally approve
the low bid award afterwards (similar to an emergency purchase). In addition, this pricing would just be
for electricity for the Water Treatment Plant, all Well Stations, and all Sanitary Lift Stations. JACOBS is
now responsible for electric service at the West Chicago/Winfield Regional Wastewater Treatment Plant;
however, it has also participated in the NIMEC bidding process.
NIMEC has indicated that they will seek bids on Tuesday, March 4, 2025, as current market conditions
are trending choppy. NIMEC will seek and receive bids from pre-qualified suppliers (i.e., Dynegy,
Constellation, AEP and MC Squared); typically, one for twelve months, one for twenty-four months, and
one for thirty-six months. The City will then be able to choose the best deal.
ACTIONS PROPOSED:
Approve Resolution No. 25-R-0011 authorizing the City Administrator to Enter into a Contract for the
Supply of Electricity for the City’s Water Treatment Plant, all Well Stations, and all Sanitary Lift Stations
COMMITTEE RECOMMENDATION:
The Infrastructure Committee voted 7-0 for approval.